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Inside Out, India and China

Inside Out, India and China: Local Politics Go Global

William Antholis
Copyright Date: 2013
Pages: 235
  • Book Info
    Inside Out, India and China
    Book Description:

    The economic and political rise of China and India will help define the twenty-first century. One out of three people on the planet is governed from Beijing or New Delhi. These two economies are likely to catch and surpass the United States and European Union in coming decades, and both countries are flexing their muscles in global affairs. The direction, shape, and speed of their rise will have enormous ramifications-particularly with economic turbulence and political transitions in both places.

    Any corporation, investor, or entrepreneur serious about competing internationally must understand what makes these two nations tick. Many in the West still look at the two Asian giants as political monoliths, closely controlled by their national governments.Inside Out, India and Chinamakes clear how and why this notion is outdated, and why it matters so much.

    William Antholis-managing director at Brookings and a former White House and State Department official-traveled with his wife and two daughters to eleven Indian states and nine Chinese provinces in five months, discovering and exploring their enormous diversity in business and governance. Antholis's travels, research, and conversations with hundreds of stakeholders make the unmistakable point that these nations are not the centrally directed dinosaurs of the past.

    More and more, key policy decisions in India and China are formulated and implemented by local governments-states, provinces, and fastgrowing cities. Both economies have promoted entrepreneurship by the private sector as well as by local government officials. Antholis's gripping narratives of local innovation in governance and business illustrate why simply maintaining a presence in Beijing and New Delhi, or even Shanghai and Mumbai, is not enough to ensure success in China or India.

    Each nation has as many people as the United States, Europe, and Latin America... combined. Both China and India are vibrant, innovative, diverse, and increasingly decentralized. Each has its own agricultural heartlands, high-tech corridors, resource-rich areas, and powerhouse manufacturing regions. But few people outside these countries can even name those places, let alone understand how they are shaping global futures. Governments, businesses, and other organizations need to adopt an inside-out strategy. In a compelling conclusion, Antholis lays out exactly what that requires.

    eISBN: 978-0-8157-2511-4
    Subjects: Political Science, Economics

Table of Contents

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  1. Front Matter
    (pp. i-vi)
  2. Table of Contents
    (pp. vii-vii)
  3. [Illustrations]
    (pp. viii-x)
    (pp. 1-8)

    ONE THIRD OF humanity is governed from two capitals, Beijing and New Delhi.

    People who work in finance often speak of the magic of large numbers. The same applies to politics. To manage the biggest challenges facing the planet, China and India must be at the table. Steering the world economy, combating poverty, slowing global warming, preventing nuclear war—these are big and hard problems. You cannot get there from here without going through these two giants.

    Yet few in Western foreign policy circles think about the dark magic of large numbers: what it takes to move two seemingly self-contained...

    (pp. 9-36)

    WHEN CHAIRMAN MAO ZEDONG and Prime Minister Jawaharlal Nehru established China’s and India’s modern systems in the late 1940s, both feared the power of provinces and states. Over six decades later, China’s and India’s most dynamic locales have pulled these two countries into leadership positions in the world economy. If China’s five largest exporting provinces were independent nations, each would rank among the top forty trading nations. India sends as many highly skilled workers to the United States as the rest of the world combined—and half of those come from just four of India’s thirty states. However, empowered local...

    (pp. 37-85)

    TODAY’S CHINA IS a crowded three-panel landscape painting. The first panel is a vibrant entrepreneurial coast. The second is a rising, inland region, where most Chinese live and where stateled economic growth dominates. The third is a remote, restive, but resource-rich west. Given this diversity, China’s leaders are obsessed with preserving unity—or perhaps more accurately, creating it. Knitting together very different economies, societies, and even political cultures is among the top leadership’s hardest jobs. It is particularly hard because many of China’s great successes—and also failures—have come from allowing greater local control.

    The stock phrase “state-led capitalism”...

    (pp. 86-131)

    INDIA, LIKE CHINA, now has both spectacularly wealthy urban centers and also hundreds of millions who live in rural poverty. India’s coast, like China’s, now features states that are global trade and investment hubs. Its hinterlands, like China’s, struggle to generate sustained economic growth, to responsibly steward natural resources, and to develop effective and transparent governance.

    India’s economic successes are real. As markets opened, Indians and others began to invest in the country’s businesses. Some high-profile exports have captured global imaginations, particularly in technology and services. Trade has grown dramatically, jumping by nearly 20 percent each year for the past...

    (pp. 132-160)

    SINCE HU JINTAO and Manmohan Singh took power in the early 2000s, China and India have regularly pledged greater cooperation with the United States and Europe on finding reliable, affordable, and sustainable sources of energy. One could predict that their regular summit meetings with industrial powers would touch on energy cooperation. China and India, along with their U.S. and European counterparts, have participated enthusiastically in a series of clean energy ministerial meetings.

    Ten years and two American presidents later, those efforts have not been entirely wasted. But American and European energy relations with both emerging giants remain unsettled at best...

    (pp. 161-188)

    CHINA IS NOT only Beijing and Shanghai; India is not only New Delhi and Mumbai. The United States and Europe need to understand the range of important localities in the world’s two largest nations, and they also mustactively engagewith those local communities and their leaders. On too many issues, American presidents or corporate CEOs have had productive talks with Indian and Chinese counterparts but are then disappointed because a regional leader opposes making a deal or refuses to implement a central government directive. And on a few key issues, important innovations are happening at the local state or...

    (pp. 189-196)
  11. NOTES
    (pp. 197-224)
  12. INDEX
    (pp. 225-235)
  13. Back Matter
    (pp. 236-236)